If a market is in disequilibrium, economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.
A)remain constant; greater
B)fall; less
C)fall; greater
D)rise; less

Question

Quizplus · Accepted Answer

In a situation of disequilibrium, the quantity demanded exceeds the quantity supplied, which leads to a surplus. To get rid of the surplus, suppliers will lower the price to encourage more buyers, causing the product's price to fall until it reaches equilibrium. Therefore, choice B ("falling prices when the quantity demanded is less than the quantity supplied") is the most appropriate answer.

If a Market Is in Disequilibrium, Economists Would Predict That